Michigan credit union acquires $160M SWFL bank division

DFCU Financial, one of the largest credit unions in the country, which traces its history to Ford Motor Co. employees, is growing its presence in Florida by acquiring the Naples and Fort Myers banking operations of MidWestOne Bank. 

Dearborn, Michigan-based DFCU will pay a deposit premium of 7.5%, or about $11.9 million for Iowa City-based MidWestOne’s Southwest Florida market and its two branches, according to a statement from the bank. DFCU will add about $159 million in deposits and $162 million in loans in the deal. The transaction, subject to all regulatory requirements and standard closing conditions, is expected to be completed in the second quarter of 2024. DFCU’s board of directors approved the deal. 

This is the second time DFCU is expanding in Florida through acquisition. Earlier this year it closed on a $94 million deal to buy Tampa-based First Citrus Bank, which had $689 million in assets. This latest expansion brings DFCU’s Florida footprint to eight locations, a release from the credit union states.

“This move enhances our capacity to serve our members and communities in Florida, providing additional convenience and local expertise,” DFCU President & CEO Ryan Goldberg says in the release. “Plus, it opens up exciting financial solutions to MidWestOne's clients on the southern Gulf Coast of Florida, adding even more value to our growing membership and community.”

"This is a tremendous market, and we are very proud of what the MWO Florida team has built. We are pleased to have found a partner in DFCU with a proven track record of growing in Florida with a focus on customers, team members, and community," MidWestOne CEO Chip Reeves adds. 

Upon completion of the transaction, all Florida employees of MidWestOne are expected to be retained by DFCU, fulfilling similar roles as they currently hold at MidWestOne, the release states. Additionally, DFCU intends to keep both branches open following completion of the transaction.

Founded in 1950, DFCU Financial has $6.3 billion in assets, about $850 million in net worth and more than 240,000 members. In addition to Florida, it operates 28 full-service branches in metro Detroit, Ann Arbor, Grand Rapids and Lansing Michigan.